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TMI Blog2006 (11) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... em mainly to the broadcasting industry. Admittedly the equipments which are mainly and basically meant for broadcasting are being classified by them as broadcasting equipments and duty paid accordingly. However, the dispute in the present appeal relates to some of the equipments imported and declared by the appellants as automatic data processing machines and units thereof. The appellants claimed the classification of the same under Heading 84.71 as computer or computer parts, whereas the revenue has classified the same under Heading 85.43 as broadcasting equipments or parts thereof. 3. It is seen that during the course of investigation statements of various persons were recorded. Shri P.R. Suresh, Director of the importer company, in his statement recorded on various dates deposed that they have been importing computer hardware, computer software for graphics and animation, editing of videos and multi-media applications; that his company was supplying goods to the persons engaged in the business of broadcasting, post production and news production. He also disclosed the names of his customers, which are mainly television channels. 4. Statement of Shri Pradeep S. Kohli, Directo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... programmes. 8. Based upon the result of the above investigation proceedings were initiated against the importer for re-classification of the goods under Customs Tariff Heading 85.43 and for confirmation of the differential demand of duty. The said proceedings resulted in passing of the impugned order. 9. We have heard Shri V. Sridharan, learned Advocate appearing for the appellants challenging the said order on merit as also on the point of limitation. Shri Ajay Saxena, learned S.D.R. appears for the revenue. 10. As regards the merits of the case, we find that use of the various equipments for non-linier editing of audio/video programmes, computer graphics, and special effects with the help of audio/video hardware and software, for animation etc. have not been disputed. The goods have been held has classifiable under Heading 84.73 on the main ground that the same were used by the broadcasting companies and were being used for the purpose of controlling the broadcasting equipments. As such it has been held that they cannot be classified under Heading No. 84.71. The learned Advocate has strongly contested the above reasoning of the adjudicating authority on the ground that end ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely or principally used in an automatic data processing system; (b) It is connectable to the central processing unit either directly or through one or more other units; and (c) It is able to accept or deliver data in a form (codes or signals) which can be used by the system. (C) Separately presented units of an automatic data processing machine are to be classified in Heading 84.71. (D) Printers, keyboards, X-Y co-ordinate input devices and disk storage units which satisfy the conditions of paragraphs (B) (b) and (B)(c) above, are in all cases to be classified as units of Heading 84.71. (E) Machines performing a specific function other than data processing and incorporating or working in conjunction with an automatic data processing machine are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings. As is clear from above, automatic data processing machines are digital machine which are capable of storing the processing programme, being separately programmed in accordance with the requirement of the uses. Such units may be in the form of systems consisting of various number of separate units. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... headings. Inasmuch as there is no dispute that Heading 84.71 covers the goods in question, and Heading 84.43 is residuary in nature covering electrical machine and apparatus having individual function, not specified or included elsewhere in this chapter. Inasmuch as we have already held that data processing units being specifically covered by Heading 84.71, the same cannot be held to be covered by residuary entry by resolving Rule 3 of interpreting Rules. 13. We further find that the Commissioner s reliance on Chapter Note 5(E) of Chapter 84 is not appropriate. It only excludes machine performing a specific function other than data processing and incorporating or working in conjunction with an automatic data processing machine are to be excluded from Heading No. 84.71. For example, the lathe machine which operates with the aid of the computer or automatic data processing machine cannot be classified under Heading 84.71 as a unit of automatic data processing machine since the lathe machine is performing a specific function other than data processing machine and it is incorporating or working in conjunction with an automatic data processing machine. By applying Note 5(E) to Cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing that the goods are to be used in edit control, they deliberately misclassified the goods with intention to evade payment of duty. They have expressed their surprise regarding corrigendum issued by the DRI and stated that Department itself is not clear as to where the goods in question are classifiable. I find that DRI under corrigendum date 10-1-2005 has corrected the classification in 32 cases which are extremely minor e.g. treating the goods as the machine (8543.89) instead of parts (8543.90). Neither any error in classification can be allowed to perpetuate nor the corrigendum issued at a later stage extinguish the duty liability that arose at the time of import. Anyway, I find that the corrigendum was issued on 10-1-2005 which covers substantial number of consignments within the period of 5 years. 17. We are unable to accept the above reasoning by the adjudicating authority for invocation of longer period of limitation. There is no denial of the fact that the goods were appropriately described in the relevant documents and there was no mis-statement or suppression as far as the description of the same is concerned. Claim of the classification of goods under Chapter 84 i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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